Posted on 27 February 2011 by J. Long
In 2009 I was badly advised by a broker to get a buy to let mortgage even though he knew it was for residential purposes. I later found out that I should not be living in the property. I have now told my lender that I am living in the property and they want me to change to a residential mortgage. I have a good credit rating but only earn £17,500 and need to borrow £115,000. I therefore, earn too little to remortgage. In the current climate it would be ludicrous to sell so what am I supposed to do? I am completely up to date with all of the repayments.
I can only think that your broker knew that you could not afford a residential mortgage and that the only way you could secure the property was by dishonestly applying for a BTL mortgage. This is mortgage fraud and you are lucky that your Lender is taking such a soft stance.
Unless your current Lender also offers residential mortgages and is willing to transfer you then there are only a few options left. You could sell part of the property to a partner or friend and get a joint mortgage, do you have any relatives that could stand as guarantors for a mortgage in your sole name or you can sell.
I suggest that you speak to your current Lender about transferring to a residential mortgage, staying on your current mortgage and also ask them what they will do if you just continue to make the monthly payments as and when they fall due.
Your mortgage broker is regulated by Financial Services Authority and you instigate an official complaint by first writing to your broker about the advice you received.
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